How to Use a Secured Loan Calculator
A secured loan is nothing more than a loan that is "secured" or "backed" by a borrower's collateral. This can be anything from a car to a home or even, in some cases, stock certificates. The secured loan calculator is used to determine which secured loan is right for you. This article gives step by step directions on how to use a secured loan calculator.
How to Use a Secured Loan Calculator
1
First understand that the collateral will be forfeited to the lender if the borrower does not repay the loan. Also understand that the secured loan calculator will help the borrower to estimate their interest and monthly cost of a loan to help the borrower make an informed decision about what is in the best interest for their personal goals. It can help the borrower to be better informed about loan payment amounts and terms for a particular financial situation.
2 Now that we fully understand the purpose of the secured loan calculator, let's figure out how to use one. We start by finding an online calculator. One of the easiest ways is to simply search for a secured loan calculator using a search engine such as Google, Yahoo, etc.
3 Now that we have decided on a loan calculator, we simply enter the loan amount that we would be interested in borrowing. When entering this amount, do not add a dollar ($) sign. Simply input an amount such as 25,000.
4 The next step is to input the terms of the desired loan. The terms might be months or years but make sure that you enter the terms according to how it is asked for. There is a big difference between 12 months and 12 years. The more payments that are made, the smaller the monthly payment but also the more interest that will be paid over the life of the loan so take this in to perspective when deciding on terms.
5 Now add the interest rate. The interest rate is usually much lower for a secured loan than a non-secured loan but the borrower's credit score and history with the lender are very important to the interest rate given.
6 Finally, calculate the loan by simply clicking on the word calculate. This will give you your estimated monthly payment and will often be divided into amounts such as interest paid, cumulative payments and principal remaining. Using a secured loan calculator is as simple as putting figures into a calculator.
How to Use a Secured Loan Calculator
via: ehow
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